Changpeng "CZ" Zhao, the founder of Binance, is seeking to dismiss a significant $1.76 billion lawsuit brought by the FTX bankruptcy estate. In a motion filed with a Delaware court, CZ and Binance have argued that the U.S. court lacks jurisdiction over the foreign transactions at the heart of the clawback claim. The lawsuit, which names CZ and other Binance executives, attempts to recover funds from a 2021 share repurchase deal between FTX and Binance.
<h2>Jurisdictional Challenge and Blame Shift</h2>
The legal filing contends that the claims are too far removed from U.S. jurisdiction, as the transactions and parties involved are predominantly based outside the United States. Furthermore, the motion argues that FTX’s legal team is attempting to "shift the blame" for the exchange’s collapse away from its former CEO and founder, Sam Bankman-Fried, who has been convicted of criminal wrongdoing. <a href="https://www.cryptoknowmics.com/news/binance-ceo-richard-teng-highlights-280-million-users-as-exchange-nears-eighth-anniversary/">Binance</a> lawyers emphasized that Bankman-Fried was the central figure in the fraud. The filing also challenges the validity of FTX’s claims, stating they "contain no facts to suggest that the tweets were false" which supposedly led to the FTX collapse.
<h2>Details of the Clawback Suit</h2>
The lawsuit stems from a deal in which Binance, an early investor, sold its 20% equity stake in FTX back to the company in 2021. The repurchase was executed using a mix of cryptocurrencies, including FTX's native token FTT. According to the FTX estate, the company was already insolvent at the time and used misappropriated customer funds to finance the transaction. The FTX estate is seeking to reclaim these funds as a "constructive fraudulent transfer."

CZ Seeks Dismissal of FTX Clawback Lawsuit

Changpeng Zhao and Binance file a motion to dismiss FTX's $1.76 billion clawback lawsuit, citing a lack of jurisdiction and improper claims.

CZ Seeks Dismissal of FTX Clawback Lawsuit

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